Days after Sony confirmed it had "stepped away" from Hideo Kojima's action espionage game Physint, a new report lays out why the publisher walked, and none of the reasons flatter the current state of the games business.
What Bloomberg Reported
According to a Bloomberg report cited by Eurogamer, VGC, and Rock Paper Shotgun, Sony's decision came down to worries about "budget, potential profitability and exclusivity." People familiar with the project told the outlet that Physint had missed deadlines and was on track to run well over budget, all while the game was still years away from release. In 2025, Kojima himself said Physint was "five or six" years off.
A major factor, per the report, was the commercial performance of Kojima's two most recent games. Death Stranding and Death Stranding 2 were both critically praised, but sources say neither pulled in the revenue Sony had hoped for, feeding a broader concern that Kojima's projects might not be the reliable money makers the company wanted.
Exclusivity also loomed large. Physint is an IP owned by Kojima Productions and was set to appear on platforms beyond PlayStation. That clashes with reports earlier this year that Sony has stepped back from its multi-format strategy and now intends to keep its single-player games on PS5 rather than porting them to PC. Bloomberg notes that both Death Stranding games were timed PlayStation exclusives that later reached PC and Xbox, and because Sony isn't the publisher for Death Stranding 2 on Xbox, it stands to earn very little from that release despite heavy investment.
A Tougher Sony
The report ties the cancellation to Sony's recent software troubles. The high-profile failure of Concord in 2024, along with the ongoing struggles of Marathon, pushed the company to enforce stricter production milestones, which have already led to several cancellations. Physint, per the report, couldn't clear those tighter bars.
Bloomberg also points to wider pressures: the hardware cost crisis linked to the generative AI industry has made consoles more expensive to build and buy, nudging Sony toward squeezing more revenue from its existing audience rather than chasing growth. The report adds that PlayStation executives who had close ties with Kojima have left the company in recent years.
Xbox Steps In
Microsoft moved quickly to pick up the game. According to the report, Xbox viewed Physint as an appealing bet because of its multiplatform reach and its film and television rights, which fit with statements from Xbox CEO Asha Sharma about pushing franchises across different media. An Xbox spokesperson told Bloomberg, "Betting on Kojima-san is an easy call. We believe in his team's ability to build AAA games with groundbreaking, new IP and we believe in OD, Physint, and our growing partnership."
Kojima Productions is also making the horror game OD for Xbox, and both the OD and Physint deals reportedly include film and television franchising rights. When Sony and Kojima announced the split earlier this week, Kojima said PlayStation had tried to cancel the game while Sony framed it as an amicable parting.
What It Means for Players
If the report holds, Physint is now years away and firmly in the Xbox and PC camp, alongside Kojima Productions' horror title OD. Death Stranding 2 remains a timed PlayStation exclusive with a multiplatform future. For anyone tracking Kojima's slate, the takeaway is simple: expect a longer wait on Physint, and expect it to land beyond the PlayStation ecosystem.